Under Sec. 7216, tax professionals must protect clients’ tax return information or face possible criminal prosecution.
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Confidentiality
Working remotely: A tax practitioner’s checklist
Despite the trend toward working from home and other nonoffice locations, tax practitioners still must meet professional requirements.
Protecting a taxpayer’s privileges
Protecting a client’s tax privileges is a fundamental duty of the CPA tax professional, and it is critical that the CPA understand the privileges that are available to a client-taxpayer.
Your federal tax privilege checklist
Tax practitioners can rely on several doctrines
to preserve the confidentiality of client communications, but they must follow appropriate
procedures and provide clear documentation to protect the privilege in IRS exams or legal proceedings.
Ethics and the tax preparer
The AICPA’s complimentary annual webcast on Tax Ethics answers questions on client confidentiality, tax practice quality control, conflicts of interest, records retention, and how
to address errors discovered on clients’ tax returns.
Power of Attorney and Declaration of Representative
Many practitioners find that the IRS does not process their Form 2848 filings and returns them because the form was prepared or filed incorrectly.
Work-Product Doctrine Protects Accountant’s Tax Advice
the Second Circuit held that the taxpayer did not waive the attorney-client privilege by sharing documents with a consortium of banks with which the taxpayer had a common legal interest.
AICPA’s Revised Confidentiality Rule, Sec. 7216, and the Tax Professional
Practitioners are encouraged to determine whether they comply with both Sec. 7216 and revised AICPA client confidentiality rules.
CPAs and Privileged Communications
Even though the privilege has been traditionally reserved for attorneys, as the world has became more complex, the courts have expanded privilege beyond attorneys to include accountants in certain situations.
Current Tax Return Disclosure Issues Involving Sec. 7216
Practitioners face some difficult scenarios in properly disclosing or using client tax return information. Multiple professional ethics pronouncements and federal and state legislative and administrative pronouncements all must be considered before acting.
IRS Updates Sec. 7216 Guidance on Disclosing Tax Return Information
The IRS took additional steps to protect taxpayer information with the December release of final regulations under Sec. 7216. The IRS also released guidance to tax return preparers about the format and content of taxpayer consents.
Protecting Communications and Documents From IRS Summons Enforcement
This article examines the rules and definitions that form the basis for the practitioner-client and the work product privileges and identifies certain measures that can increase the protection of sensitive client information.
Rules on Use, Disclosure of Taxpayer Information Finalized
The IRS issued final regulations under Sec. 7216 that govern the circumstances in which tax return preparers can disclose or use certain limited tax return information.
IRS Postpones Effective Date of New Procedures for Consents to Disclose
The IRS Rev. delayed the date that taxpayer consents to disclose and consents to use tax return information must contain the mandatory language recently issued in Rev. Proc. 2013-14.
Mandatory Language for Consents to Disclose, Use Taxpayer Information Modified
The IRS has provided guidance to tax return preparers about the format and content of taxpayer consents to disclose and consents to use tax return information and modified the mandatory language required on each taxpayer consent.
Rules on Use, Disclosure of Taxpayer Information Finalized
The IRS issued final regulations under Sec. 7216 that govern the circumstances in which tax return preparers can disclose or use certain limited tax return information.
Transferring Client Data Securely
It is critical for CPAs to maintain control over the transfer of data to assure that their clients’ confidential information is not compromised.
AICPA Provides Guidance on FSA Certification Letters
Tthe AICPA has worked with the FSA to create a certification letter CPAs can use when their clients are asked to certify income and is providing its members with sample engagement and disclosure letters to be used in connection with providing a certification letter for clients.
IRS Issues Regs. and Guidance on Disclosure of Tax Return Information
The IRS has issued regulations under Sec. 7216 that increase the circumstances in which tax return preparers can disclose or use certain limited tax return information and two revenue rulings that provide guidance to tax return preparers on situations in which they will not be liable for civil or criminal penalties under Sec. 7216 for disclosing or using tax return information.
New Tax Preparer Rules for Disclosure and Use of Return Information
The IRS released final regulations under Sec. 7216, providing guidance for tax return preparers about the disclosure or use of tax return information.
employee benefits & pensions
Profits interests: The most tax-efficient equity grant to employees
By granting them a profits interest, entities taxed as partnerships can reward employees with equity. Mistakes, however, could cause challenges from taxing authorities.
